Considering November 2023 brought much steeper inflation than last year, we also saw Indonesia’s annual headline inflation rate rise from 2.56 percent year-on-year (y/y) in October 2023 to 2.86 percent (y/y) in November 2023.

The dominant contributor to Indonesian inflation in November 2023, as usual, was the food, drinks and tobacco expenditure component. Key food products that caused this component to increase by 1.23 percent (m/m) were red chili, cayenne pepper, shallots, rice, granulated sugar, purebred chicken eggs, green chili, and beans.



Food prices typically rise as we approach the year-end because Indonesian society starts to prepare for the festive season (Christmas and New Year). However, it is also the consequence of the El Nino weather phenomenon that brought drier-than-usual weather to Indonesia in the second half of 2023 and therefore harvests were not as good as usual.

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This is the introduction of the article. The full article can be found in the November 2023 edition of our monthly report (an electronic report, PDF). This report can be ordered by sending an email to info@indonesia-investments.com or a message to +62.882.9875.1125 (including WhatsApp).

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